Polkadot’s [DOT] recovery is likely: Can bulls target pre-FTX levels?

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion

  • DOT discovered a gentle floor, and worth recovery could possibly be doubtless.
  • DOT’s Funding Rate declined, however there was a slight enchancment at press time.

Polkadot [DOT] bulls secured a gentle maintain at $6.178. At press time, DOT’s worth was $6.277 with a flash of inexperienced, indicating a recovery could possibly be doubtless. 

Despite January’s rally, DOT is one of many few belongings that hasn’t hit its pre-FTX ranges. However, DOT may hit its pre-FTX worth within the subsequent few days/weeks, particularly if subsequent week’s FOMC announcement is dovish. 

Read Polkadot [DOT] Price Prediction 2023-24

The pre-FTX stage at $7.127: Is a retest doubtless?

Source: DOT/USDT on TradingView

On the 12-hour chart, the Relative Strength Index (RSI) was 61, displaying a bullish DOT. The On Balance Volume (OBV) and the Chaikin Money Flow (CMF) had upticks, indicating that buying and selling volumes elevated barely, thus serving to strengthen the DOT present market. 

If the pattern continues, the recovery’s momentum will enhance, permitting bulls to target the overhead resistance at $6.841 and the pre-FTX stage of $7.127. However, bulls should clear the bearish order block at $6.566 to proceed the upward momentum. 

Alternatively, bears may overwhelm bulls, given the low buying and selling volumes. Such a transfer may plunge DOT beneath the $6.178 assist, invalidating the bullish bias described above. But the drop may settle on the 100-period EMA (exponential shifting common) or the assist vary of $5.600 – $5.800 (inexperienced zone). 

Is your portfolio inexperienced? Check out the DOT Profit Calculator

DOT’s sentiment and Funding Rate was unfavourable, however …

1674722467 884 Polkadots DOT recovery is likely Can bulls target pre FTX levels

Source: Santiment

A pointy drop in Funding Rate round January 23 coincided with DOT’s current prime. Further worth drop on January 24 noticed one other decline in Funding Rate, indicating falling demand within the derivatives market. 

However, on the time of writing, the Funding Rate recorded a slight enchancment because it moved upwards. The enchancment displays the worth recovery noticed at press time, and extra demand within the derivatives market may prop up DOT’s worth.

Nevertheless, DOT’s sentiment remained unfavourable, displaying traders had been nonetheless uneasy with the asset. But the rising open curiosity (OI), as evidenced by Coinglass, may additional enhance the worth recovery. 

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